Agriculture Loan: Lakhs of farmers of the country have outstanding loans from cooperative and nationalized banks. Many times, in the event of not being able to repay the loan, the farmers are also declared as defaulters, after which the way to take loan from further gets closed. Obviously, a legal contract is made while taking a loan, but many times farmers forget to pay the loan installments due to crop failure, weather or other reasons. Many a times, banks remind the farmers to call and re-pay the loan, but after getting a chance once or twice, the banks add expenses like late fee, penalty, legal cost to the loan as per their terms and conditions. , Due to which the loan amount increases.
This loan falls like a burden on the farmers, which is not in the capability of every farmer to repay. Many times the farmer has to sell the land kept as security. Now there is a need for money in farming, so the question of farmers remains whether they can take loans from banks or other financial institutions even after being declared defaulters.
Who are defaulter farmers
When the farmers are unable to pay the old loan interest installments or EMI on time, the banks and financial institutions declare the farmers as defaulters. In such a situation, farmers may face problem in taking loan again, because every bank passes new loan only after seeing the old record.
In such a situation, the question also arises on the credibility of the farmer. The real concerns arise when calls are received from the lending banks and recovery agents to recover the loan amount. Many times farmers are also given a second chance, in which farmers can improve their credit status by depositing the loan amount along with late fees.
Which loans can farmers take?
Farmers get many types of loans from agriculture to personal needs, including Kisan Credit Card, Tractor Loan, New Tractor Loan, Loan Against Tractor, Personal Loan, Mortgage Loan, Gold Loan etc. Many times farmers are also given loans on the security of land or vehicle, so that they can fulfill their personal needs.
Can defaulter farmers take loan again?
According to experts, the CIBIL score or credit status is checked to give loan to any farmer or other professional. If the farmer has repaid the old loan late but has repaid it, then he will be eligible for the loan again.
In such a situation, it is mandatory to have a CIBIL score of more than 750 to get the loan. There are many financial institutions in India that are ready to give loans to applicants with more than 300 CIBIL scores, but their interest rates are quite high.
how to improve cibil score
To avoid being declared a defaulter, the farmer has to improve his CIBIL score. For this, it is necessary that the interest installment or EMI of the bank from which the loan has been taken should be paid on time.
Experts say that the farmers should get the loan passed according to their income, so that it is easy to repay it. Always take only one loan at a time. Many times there are difficulties in repaying the loan even when the debt burden increases.
Agriculture is a work full of uncertainties. Under good circumstances, you can repay one loan, but it may be difficult to make up for it by taking a second and third loan in a row. In such a situation, cooperative banks or farmers can take credit card loans, whose interest rates are very low.
Loan is available on these conditions
Many private banks and companies have cleared the way for loans for defaulter farmers. The condition is that the farmer has to give bail or guarantee, although many state governments also bring schemes like loan waiver or interest waiver. Now instead of cash, farmers are also given the facility to buy seeds, fertilisers, fertilizers and machines on loan.
Disclaimer: Some of the information given in the news is based on media reports. Farmer brothers, before implementing any suggestion, do consult the concerned expert.
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